Asset Management 2
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- Next we will look at the Life Cycle of an Asset
- The life cycle of an asset can be defined as a period that the department can foresee itself utilizing an asset on an economically effective and efficient basis for furtherance of departmental objectives.
- The life cycle depends on the 4-phase approach that is applied by Asset Management, which are:Planning: establishing and planning of an asset need.Acquisition: how to acquire the asset.Operational and Maintenance: upkeeping of assets e.g., maintenance, refurbishment, enhancements, and reporting.Disposal: disposing of assets when the economic life has expired, or when the need for the service provided by the asset is relinquished.
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